InvestmentJun 12, 2026, 04:37 PM
Universal Safety Products Secures $10.6M Convertible Note Deal
AI Summary
Universal Safety Products, Inc. entered into a Securities Purchase Agreement with SJC Lending LLC to sell convertible promissory notes with an aggregate principal amount of up to $10.6 million for a purchase price of up to $10.0 million. The financing will be conducted through eleven separate tranche closings, with an initial tranche of $1.06 million principal for $1.0 million already completed. The conversion of notes exceeding 19.99% of common stock is subject to regulatory and stockholder approval, and the notes carry an 8% annual interest rate, maturing in one year.
Key Highlights
- Universal Safety Products entered a Securities Purchase Agreement for up to $10.6 million in convertible promissory notes.
- The total purchase price for the notes is up to $10.0 million.
- An initial tranche of $1.06 million principal for $1.0 million was issued on June 12, 2026.
- The convertible notes accrue interest at 8% per annum, increasing to 20% upon an event of default.
- Notes mature on the first anniversary of issuance and are convertible into common stock.
- Conversion price is the greater of $1.00 or 80% of the lowest 5-day VWAP, capped at $10.00 per share.
- Conversion exceeding 19.99% of outstanding common stock requires stockholder and regulatory approval.
- The company is restricted from issuing certain equity for 90 days and variable rate transactions for up to one year.
Price Impact
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